Internet of Things
Impact on Critical Infrastructure Applications
© 2014 Utilities Telecom Council of Canada
2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
Internet of Things
Impact on Critical Infrastructure Applications
Tom Kindred, VP and CIO, SaskPower
Rick Geiger, Executive Director, Utilities & Smart Grid
September 2014
2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
Internet of Things
Impact on Critical Infrastructure Applications
• How will IoE affect Utilities?
• How does IoE integrate with Smart Grid?
• What IoE strategy will developed?
• IoE Driving IT / OT Convergence In Utilities
• What are Utility and Customer Benefits?
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2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
IoT Is Here Now—and Growing!
50 Billion
40
30
20
BILLIONS OF DEVICES
50
“Smart Objects”
Rapid Adoption
Rate of Digital
Infrastructure:
5X Faster Than
Electricity and
Telephony
25
The
New
Essential
Infrastructure
Inflection
Point
12.5
10
6.8
0
7.2
7.6
World
Population
TIMELINE
2010
2015
2020
Source: Cisco IBSG, 2011
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2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
Declining Cost of Computation, Storage,
and Communications Over Time
Communication
Computation
Storage
Storage and Computation Falling Fastest:
 Sensors will evolve faster than bandwidth
 Distributed computing becomes more
compelling over time
Sources:
•
http://www.kurzweilai.net/sin-charts#!prettyPhoto
•
http://blog.backblaze.com/2011/06/22/price-gapstorage-vs-bandwidth/
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2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
Convergence Leading to IoT
Moore’s Law
Technology gets
cheaper and
more powerful
Metcalfe’s Law
More connections
create more value
Big Data
Analytics
From
To
Sparse Data
Big Data
History
Predictive
Static
Near time
Lowers costs
and creates new
revenue/value
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2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
The Internet of Everything (IoE)
People
Process
Connecting People in More
Relevant, Valuable Ways
Delivering the Right Information
to the Right Person (or Machine)
at the Right Time
IoE
Data
Leveraging Data into
More Useful Information
for Decision Making
Things
Physical Devices and Objects
Connected to the Internet and
Each Other for Intelligent
Decision Making
Networked Connection of People, Process, Data, Things
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Internet of Everything
How will IoE affect
Utilities?
“The explosion of smart sensors and software-defined devices is
driving unprecedented needs for robust processes for managing
security, keys, device identity, configuration, provisioning,
reliability and resilience.”
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2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
Utility Industry Megatrends
Expansion of energy markets
Changing customer expectations
for distributed energy resources
enabling greater adoption and
increased transactions
resulting from the digitization
of services allowing anytime,
anywhere personalized services
Rise of social networks
the ability to quickly form
communities of interest and
communicate instantaneously
with a billion people globally
via text, video and/or voice
Pervasive connectivity
and computing
is unlocking a sea change in
productivity gains for businesses,
disrupting existing businesses and
creating new opportunities for agile firms
Financial innovation
Social
Networks
Economic
Networks
Cyber
Networks
Electric
Networks
that is enabling a wide range
of customers to amortize initial
capital costs of DER to align with
benefit cash flows and make a
stronger value proposition
Energy technology
advancements
for power system and distributed
energy technologies are accelerating
at exponential rates while also
converging to enable breakthroughs on
business models and system performance
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2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
Electric Grid Market Transition
Multiple Energy Sources
Unpredictable Voltage Levels
Human Intervention Too Slow
CENTRALIZED Analytics, Control,
and Protection Applications
Business
Application No. 1
Business
Application No. 2
Business
Application No. 3
Network No.1
Network No.2
Network No.3
Device No.1
Device No.2
Device No.3
DEVICES
Government Regulation
Central Operations
Not Scalable
DISTRIBUTED Analytics, Control,
and Protection Applications
Business
Application No. 1
Business
Application No. 2
Business
Application No. 3
Converged IP based Network
Device No.1
Device No.2
DEVICES
Device No.3
Global Policy Driving Decentralization
Europe
Germany’s Energiewende: from nuclear to renewable
and distributed energy. Volkswagen launched natural
gas engine residential CHP unit. Solar PV reached
retail parity in Germany, Spain and Italy
USA
43 States have NEM policies & 3.3 GWs of Solar
PV installed thru 2012.
Installed prices for PV systems fell 27% in 2012
White House targets 122 GW of CHP
China
Launched new policy to encourage distributed
energy resources up to 6MW in size and allow
surplus to be sold openly
Japan
Ene.farm Sm. Comm. & Residential fuel cell
program gaining market traction. Solar PV &
battery storage subsidies driving adoption
Brazil
Installing 63M smart meters
by 2021. National NEM
policy adopted in 2012
Australia
Australian solar PV market currently at 2.5GW,
will likely grow to 6GW-10GW by 2017
Rooftop solar PV is reducing overall electricity
demand by 3%
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2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
3 R’s for Utility Success in 21st Century
IoT enabling the Utility Platform
from Enterprise to Customer/Producer
Relationships
with Customers, Community, Employees and Partners
Reliability
and Safety of Services for Consumers and Producers
Success
Model for
Connected
Energy
Realization
of Operational Excellence
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2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
Internet of Everything
How does IoE integrate
with Smart Grid?
“Ubiquitous connectivity, with embedded services for security,
discovery, resilience, management and performance lowers cost
barriers.”
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2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
Internet of Everything: Intelligent Energy
Observable
Intelligent
Automated
Transactive
Full determination
of grid state—
deep situational
awareness
Ability to gain
situational
intelligence to
support operational
decisions
Rapidly adapt to
changing conditions
with minimal human
involvement
Dynamically
balancing diverse
resources and
distributed market
participation
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2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
Connectivity: Everything -- Everywhere
Traditional Computing Model
IoT Computing Model
(Terminal/Mainframe, Client-Server, Web)
Data Center/
Cloud
Speed of Light
Latency-Critical
Responsiveness Required
Assumes Infinite,
Bandwidth, 0 Delay
Resiliency
Security
Data Grows Faster
Than Bandwidth
Endpoint
Data Center/
Cloud
Assumes Limited Bandwidth,
Variable Delay, and Intermittent
Connectivity
Distributed
Computing
Assumes Limited Bandwidth,
Variable Delay, and Intermittent
Connectivity
Device
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2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
Security
Pervasive Architecture-Based Secure IP Solutions
Defend
Extend
Prevent
Comply
Defend Grid
Operations
Secure Utility
Connectivity
Prevent Loss of
Critical Assets
Achieve Regulatory
Compliance
Threat Defense
Secure Mobility
Workforce
Physical and Data
Loss Prevention
Governance, Risk
and Compliance
Securing the End-to-End Electric Power Supply Chain
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Underlying Security Principles
Access Control


Data Confidentiality
and Data Privacy
User and device
identity

Authentication,
authorization, and
accounting

Threat Detection
and Mitigation
Network
segmentation

Security connectivity
and encryption
(VPN)

Security zones
and firewall
Intrusion prevention
Device and
Platform Integrity

Device hardening

Configuration
assurance
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2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
Internet of Everything
What IoE strategy will be
developed?
“Internet of Everything is not a single technology, product or
project. It’s the continuing realization of connectivity, data,
analytics and security.”
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2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
IoE Strategy
Expanding Connectivity


Substation Automation & Security
 Grid Sensors – PMUs, Volt/VAR, IED & Protection
 Advanced Metering Infrastructure

Multi-service Networks – going beyond point/multipoint

Distributed Energy Resources

Advanced Distribution Management for multi-way power flows
 Networking microgrids

Identify common requirements, services, & security
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2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
Internet of Everything
IoE Value Streams
This section introduces a model for understanding the valueadd activities commonly performed by IoE solutions. The
model is architecture and technology independent.
This model was developed by applying lean concepts (value,
flow, pull, optimization) to the IoE value streams.
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2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
A Complete IoE Value Stream Model
Build, Operate and Maintain
T
Decide
T
Sense / Measure
Communicate
Receive / Collect
Manage
Analyze
T
T
Signal
Communicate
Command /
Control (C2)
Act
Decide
Each activity adds value to the upstream’s output
2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
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A Complete IoE Value Stream Model
Build, Operate and Maintain
The
Devices
Sense / Measure
D
D
Signal
Communicate
Receive / Collect
Manage
Action
D
Communicate
Command /
Control (C2)
The
Business
Your
Customers
Decide
Knowledge
D
Act
Inform
Analyze
Decide
Forming Continuous value cycles
2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
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Many Connected systems
An IoT Enabled Utility
Act / Plan
Decide
Analyze
3rd parties
IoT based
Solutions
Enterprise
Enterprise
Systems
Systems
Operations
Distributed
Generation
Distribution
Metering
Demand
Management
2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
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5
Using the IoT Value Stream Model
Build, Operate and Maintain
Other data
needed?
Decide
D
D
Sense / Measure
Communicate
Receive / Collect
Manage
Analyze
D
D
Signal
3
Things to
sense and
signal
Communicate
Command /
Control (C2)
4
Detail IoT activities
chained together
Act
Decide
1
2
Decisions
and actions
possible
The
business
objective
2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
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Internet of Everything
IoE Driving IT / OT
Convergence In Utilities
“One could argue that IT/OT convergence is not a high priority; we
have been very successful without it for a very long time. Now the
IT/OT debate is no longer a matter of if it happens, it’s a matter of
when and to what extent.”
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2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
IT
OT
PURPOSE
Managing Asset Information,
Automate Business Processes
Running the Assets, Controlling
Technology Processes
DESIGN
Intelligent Design by Enterprise
Architects
Evolutionary Design by
Vendors/Engineers
ARCHITECTURE
Transactional or Batch, Relational
Database or Text
Event- Driven, Real-Time,
Embedded Software, Rule Engines
INTERFACES
Web Browser, Terminal and
Keyboard
Sensors, Coded Displays,
Terminal
OWNERSHIP
CIO and Computer Grads
Engineers, Technicians
Control Networks (Predominantly
Analogue or Serial)
CONNECTIVITY
Corporate Network, IP Based
SERVICE LEVEL &
AVAILIBILITY
99.5 to 99.9%, Scheduled
Maintenance Outages, High
Bandwidth
99.999 to 100%, 7/24, No
Outages, Low Bandwidth, Low
Latency
ERP, SCM, EAM, CRM, E-Mail,
Billing
SCADA, PLCs, Modeling, Control
Systems
EXAMPLES
SOURCE: ADAPTED FROM TECH CHANNEL MEA
2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
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OT/IT Convergence Drivers
Competition
Modernization of
OT Systems
New IT Affecting
Operations
OT/IT Capacity and
Abilities
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2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
Awareness
• Low risk entry
• Build trust
• Shows benefit of
convergence
• IT learns OT
• Risk: IT dept with a
poor track record
Level 1
Building
Foundation
• OT/IT networks and
associated budgets
• OT/IT cyber security
• Increased operational
reliability/resilience
• Reduced cyber threats
• Large OpEx savings
• Risk: OT trust of IT
Level 2
Standardizing
• “Intelligent Design”
allows for greater
integration
• 7/24 on call
• Corporate view of
end to end data
• Some OpEx savings
• Risk: Often most
controversial level
Level 3
Critical Apps
Leverage
Improve
Control
Establish
Voice Com
Core
Infrastructure
Non-Critical
Apps
Driving
• 7/24 on site
resources required
• Real time analytics
exposed to corporate
systems
• Advanced corporate
functionality and
capability
• Risk: Need to ensure
high availability of
critical systems
Level 4
Optimize
Intelligent
Intelligent
Devices
Devices
None
Degree of OT/IT Convergence
Full
OT/IT Maturity Model
Leveragin
Leveraging
g
• Full OT/IT
convergence
• Intelligent devices
and sensors are
prolific (IoT)
• Self healing
• Self sustaining
• Self service
• Risk: Turning
control over to
machines - Speed of
failure!
Level 5
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Maturity in a Power Utility
Applications
IT Devices
Core IT Infrastructure
Level 1
OT Devices
Level 3
Level 2
Level 4
Level 5
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Internet of Everything
What are Utility and
Customer benefits?
“Customers want reliability and control of the energy use and costs.
Utilities must respond with operational efficiency, reliability and
security; meeting Public Policy goals for renewability.”
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2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
Benefits of OT/IT Integration
Cost reduction
Single view of the truth
Dynamic real-time
optimization
Integration
Increased employee
engagement
Robust and secure
technology
Increased customer
satisfaction
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2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
Benefits of Distribution Automation
Operational
&
Maintenance
Benefits
Customer
Related
Benefits
Financial
Benefits
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Improved reliability
Improved voltage control
Reduced man power
Accurate and useful planning
Better fault detection
Better management of system
Increased revenue
Improved capacity
Customer retention
Reduce interruption cost
Better quality of supply
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2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
Advanced Distribution Vision
Four over-arching business objectives:
Optimize connection of
Distributed Generators
(DGs) into utilities rural
distribution system
Improve Distribution
Reliability and Operations
Optimize Outage
Restoration Optimization
Optimize Network Asset
Planning
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2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
Early Findings from Canadian Utilities
Distribution Automation
and DMS can improve
SAIDI by 1 hour



Transmission Feeders:
could reduce customer
interrupted hours (42
minute SAIDI
improvement)
Distribution Feeders:
could reduce customer
interrupted hours
(expecting an
additional 20 minutes)
Fault location
technology would
reduce average time to
locate faults by 30
minutes
DMS provided additional
benefits that were not in
original business case

The number of
cancelled outages
can be reduced

Reduction in site
visits to address
Power Quality
Issues on the
Distribution system

Switch plans can
be created and
validated more
efficiently
IEC 61850 (P&C) beyond
the fence should be
pursued cautiously

Should not be
pursued beyond the
substation –
continue to assess
61850 performance
over next 5+ years
Impact of Distributed
Generation on grid less
than anticipated

Focus for
Distribution
Automation will not
have the same
focus for Distributed
Generation
enablement - DG’s
are having less of
an impact than was
originally
anticipated
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Early Findings from Canadian Utilities
Utilize third-party
cellular instead of
WiMAX for SCADA

Third-party cellular is
more cost effective if
only using SCADA

WiMAX is required for
Protection and Control
schemes

WiMAX should be
pursued if it can be
leveraged by overall
telecom strategy (AMI
Collectors, Data,
Leased Line
Avoidance)
AMI for Operations has
demonstrated significant
benefits
Demand Response on
water heaters and smart
thermostats offer savings

Revenue Protection
requires improved data
to realize benefits
In addition to the
value of peak
savings and
efficiency, external
analysis shows
more than
$100/year in bill
savings
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2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
Opportunities to Reduce Customer Bills
Σ=
$130/year for each
customer
Customer Benefit
Utility Benefit
Reduce System
Peak
Meet Energy
Efficiency
Mandate
Defer Investment
by Managing
Local Peak
Meet
Shareholder
Mandate
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2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
Early Findings from Canadian Utilities
Technology
Recommendation
Rationale
AMI for Operations
PROCEED IMMEDIATELY
Using meter infrastructure to support operations provide significant operations/ productivity benefits.
Distribution Automation
PROCEED IMMEDIATELY
Distribution Automation significantly improve reliability (>1 hour reduction in SAIDI). This is the most cost-effective avenue
for utilities to improve its reliability and get ops benefits.
Fault Location
PROCEED IMMEDIATELY
Fault location is able to successfully provide the location of the fault speeding restoration by an average of 30 minutes.
DMS / DMS Field Client
PROCEED CAUTIOUSLY
Distribution Automation requires a new control system and the DMS provides additional operational/ productivity benefits.
Significant additional benefits could be realized by integrating OMS into an Advanced DMS Upgrade.
Conservation Voltage
Reduction
CONTINUE WITH PILOTS
Significant bill savings and peak savings coupled with power quality benefits could be realized. Employed by many other
utilities.
Demand Response
CONTINUE WITH PILOTS
Significant bills savings could be offered to customers and significant peak shaving as well as energy benefits could be
realized.
Energy Storage
DEFER UNTIL UTILITY
STUDIES SHOW DIFFERENT
DGs are not currently causing significant issues that would justify the current cost of energy storage systems.
Energy Theft
DEFER UNTIL BETTER DATA
Current quality of distribution data makes identifying theft difficult. Will improve with DMS rollout and AMI base
deployment
WiMAX
DEFER TO TELECOM
STRATEGY
The advanced P&C schemes that require WiMAX are not cost effective. Third-party cellular is more cost-effective for
SCADA. WiMAX could be useful as part of overall telecom strategy.
IEC61850 PCT
DO NOT PROCEED PAST
PILOT
The IEC61850 technology is still too new for the North American marketplace. Current engineering challenges would
make it more expensive than current solution.
Advanced DG Protection
Schemes
DO NOT PROCEED
The benefits associated with keeping DG connected in alternative configurations does not substantiate the costs.
Continue to assess over next few years, re-assess if DG penetration expands again.
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Thank you.
Thank you
2014 Canadian Utilities IT & Telecom Conference | September 23-26 | Calgary, Alberta
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